Service tax

As per Notification No.25/2012-ST,hereby exempts the following taxable services from the whole of the service tax leviable thereon under section 66B of the said Act, namely:- 30. Carrying out an intermediate production process as job work in relation to -

(a) agriculture, printing or textile processing;

(b) cut and polished diamonds and gemstones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 of the Central Excise Tariff Act ,1985 (5 of 1986);

(c) any goods on which appropriate duty is payable by the principal manufacturer; or

(d) processes of electroplating, zinc plating, anodizing, heat treatment, powder coating, painting including spray painting or auto black, during the course of manufacture of parts of cycles or sewing machines upto an aggregate value of taxable service of the specified processes of one hundred and fifty lakh rupees in a financial year subject to the condition that such aggregate value had not exceeded one hundred and fifty lakh rupees during the preceding financial year.

There can be two scenarios:

1. Any process amounting to manufacture or production of goods: This is covered under the negative list (Section 66D(f)).  As per Section 65B (40) -  "process amounting to manufacture or production of goods" means a process on which duties of excise are leviable under section 3 of the Central Excise Act, 1944 (1 of 1944.) or any process amounting to manufacture of alcoholic liquors for human consumption, opium, Indian hemp and other narcotic drugs and narcotics on which duties of excise are leviable under any State Act for the time being in force;

2. Other process: are generally chargeable to service tax, except exempt otherwise (like the one mentioned above by Mr.Raghavender).

If you provide the details of the specific job work to you are wanting an answer, we can check on that.

thanks for correcting me Pradeep kamath ji.

Thanks Gentlemans. 

Am doing yarn doubling work for spinning mills. Doubling is a intermediate process from cotton to yarn..

Please clarify am applicable to service tax 

Thanks & Regards, 

P.Govindaraj

+91 95 97 97 57 57 

Intermediate production process as job work in relation to textile processing is covered under Sl.No.30 of Notification 25/2012, therefore this should be exempt.